Who Is Covered?

Workers covered by your Montana State Fund policy

The Montana Workers’ Compensation Act contains definitions and coverage requirements pertaining to residents of Montana and non-residents. The workers covered by a Montana State Fund policy are defined by Section 39-71-118, MCA:

39-71-118. Employee, worker, volunteer, volunteer firefighter, and volunteer emergency medical technician defined. (1) As used in this chapter, the term "employee" or "worker" means:

(8) For purposes of this section, an "employee or worker in this state" means:
(a) a resident of Montana who is employed by an employer and whose employment duties are primarily carried out or controlled within this state;
(b) a nonresident of Montana whose principal employment duties are conducted within this state on a regular basis for an employer;
(c) a nonresident employee of an employer from another state engaged in the construction industry, as defined in 39-71-116, within this state; or
(d) a nonresident of Montana who does not meet the requirements of subsection (8)(b) and whose employer elects coverage with an insurer that allows an election for an employer whose:
(i) nonresident employees are hired in Montana;
(ii) nonresident employees' wages are paid in Montana;
(iii) nonresident employees are supervised in Montana; and
(iv) business records are maintained in Montana.

(9) An insurer may require coverage for all nonresident employees of a Montana employer who do not meet the requirements of subsection (8)(b) or (8)(d) as a condition of approving the election under subsection (8)(d).

The Montana workers’ compensation act also addresses coverage for covered workers while temporarily out of Montana:

39-71-402. Extraterritorial applicability and reciprocity of coverage -- agreements with other states -- rulemaking. (1) (a) In the absence of an agreement under subsection (2), if a worker employed in this state who is subject to the provisions of this chapter temporarily leaves this state incidental to that employment and receives an injury arising out of and in the course of employment, the provisions of this chapter apply to the worker as though the worker were injured within this state.

In summary, the workers covered by a Montana State Fund policy include:

Montana residents whose duties are primarily performed in Montana or duties are controlled within or from Montana including while “temporarily” out of state; AND
Non-residents whose principal duties are performed within Montana on a regular basis or non-resident employees of an employer from another state engaged in the construction industry within Montana.

If you have workers performing work outside Montana, you may be required to provide workers’ compensation coverage in the other state. It is your responsibility to secure such coverage. It is important to understand that Montana coverage is required for Montana resident workers temporarily out of Montana and coverage may also be required in the other state.